Henderson v Merrett Syndicates [1995] 2 AC 145

Court: House of Lords 

Basic Facts: Investors (Names) in Lloyd's of London suffered losses and sued the managing agents for negligence, even though some had no direct contractual relationship with them. 

Issue for the Court: Can a party sue in tort for economic loss due to negligent services, even when no direct contract exists? 

Held: In dismissing the appeals, it was held that managing agents owed a duty of care in tort to both direct and indirect Names.

• Lord Goff: Held that reliance on advice or services and an assumption of responsibility by the defendant could establish liability in tort, even without a contract. 

• Lord Browne Wilkinson: Emphasized that a party assumes responsibility by agreeing to manage another’s affairs, making them liable for negligence in those services. 

Key Issues: 

• Tortious Liability for Economic Loss: Expanded the scope of liability in tort where a party assumes responsibility for another’s affairs, even in the absence of a direct contract.